Student Number |__|__|__|__|__|__|__|__|__|
Family Name _____________________
First Name _____________________
School of Business – National EXAMINATION
Semester 2 Main, 2020
BUSN104: MONEY MATTERS – National
Lecturers: Kanchan Bandyopadhyay, Samantha McKee, Jyotirmoy Podder
Examination Duration: 0 minutes
Weighting: 50%
The take-home exam will be open for a 7-day period. Further instructions will be provided when uploading the take-home exam to Exam Management System.
Exam Conditions:
7 days
Semester 2 Main, 2020 BUSN104 – National
Yes
Materials Permitted In The Exam Venue:
N/A – Hosting a LEO Quiz, LEO Assignment or Take-Home Exam Materials To Be Supplied To Students:
None
Instructions To Students:
Please note, this take-home examination is due by the closing date/time. Late submissions will not be accepted. To verify the date/time your assessment is due, please refer to submission link in the relevant LEO EXAM unit.
Only submit the answers to the questions posed.
Submit all responses in a Word document.
For Part B Question C, complete the calculations in a spreadsheet program (Excel is suggested) and copy and paste the relevant spreadsheet cells into your word document to show your calculations.
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ASSESSMENT GUIDE
BUSN104: Money Matters
Semester 2, 2020
Assessment Number 3
Assessment Artefact: Take-home Exam (Individual)
Weighting [50%]
Marks [50]
This final assessment report will give you the opportunity:
• to demonstrate how well you understand the reports for large Australian companies
• apply the skills of Excel and Spreadsheeting in a Capital Budgeting context
• to investigate how stakeholders can be served by annual report documents
• develop your research skills to find relevant points and synthesise the important aspects of the reports
What are the types of employability skills that I will acquire upon completion of this assessment?
Skill type:
Developed critical and analytical thinking Yes
Developed confidence to learn independently Yes
Developed written communication skills Yes
Developed knowledge in the field of the study Yes
Developed work-related knowledge and skills Yes
Assessment Overview:
This assessment task is based on real-life data. You will need to answer the questions for CSL and the task and answer conceptual and theoretical type questions and/or numerical calculation type questions. The purpose of the final assessment is to determine students’ understanding of how varying economic events affect accounting. The assessment task requires students to apply their learned knowledge of forecasting and financial planning as well as cost volume profit analyses.
Due date: Wednesday, 11 November 2020, 12.00pm AEDST
The submission system/Turnitin opens on Wednesday 4 November, 12pm. Please access through a LEO site named -Exam-BUSN104-National- Semester
2, 2020” on the left side of your LEO page or via this link (see https://leo.acu.edu.au/course/view.php?id=35506)
The link will be accessible after 19 October 2020.
Weighting: 50%
Length and/or format: Question and answer.
Learning outcomes assessed LO2, LO3, LO4
Word count 1000 words
Topics assessed Content from Weeks 7, 8, 9, 10, 11
Graduate attributes assessed GA5, GA8
How to submit: Turnitin
Assessment criteria: n/a
Context
This assessment is based on a real company, and gives students the opportunity to apply the concepts they have learned in Weeks 7 – 11 of the course and integrate the learning outcomes of Money Matters.
You will have one week (7 days) within which to complete the assessment.
Submission Instructions
1. Assessment 3 will be available from 12.00pm AEDST Wednesday 4 November 2020.
You will have 7 days to submit at 12.00pm AEDST, Wednesday 11 November 2020 via Turnitin using Exam-BUSN104-National- Semester 2, 2020 LEO site by the Exam Management Office (see https://leo.acu.edu.au/course/view.php?id=35506)
2. Assignments submitted by other means (e.g. email) or forms (scanned copy, Excel document) will attract no marks.
Case Study Sources
Go to the following sites and download the information for Part A:
Source 1: CSL Annual report 2019/20
https://www.csl.com/-/media/csl/documents/annual-report-docs/csl-ltd-annual-report-2020-full.pdf
Source 2: Report summary 2019/20
https://medialib.csl.com/-/media/shared/documents/results/2020-fy-announcement.pdf?la=enus&hash=6DC4210B71BD961AE0BD0E1514EE02E2FFAD9328
Source 3: Yahoo finance CSL historical share and dividend data https://au.finance.yahoo.com/quote/csl.ax?ltr=1
The questions commence on the following page.
Questions:
Part A: Accounting Report and Funding – 30 marks. Students must answer all questions Consider the CSL 2019/20 Annual Report.
a) The role of the Board of a company is to govern the company to increase shareholder (owners’) value. This means that they often have systems that align manager and shareholder interests.
From the Remuneration section of Director’s report from CSL provide one brief example of a method used that encourages CSL executives to also grow the shareholders’ wealth (remember to use intext referencing).
(3 marks, LO2)
b) Based on the Note 11d which type of non interest-bearing debt is CSL primarily using to finance its operations? What are the risks and benefits of using this type of financing? (4 marks, LO2)
c) CSL report all its economic activities in monetary terms. In which currency does CSL report all its transactions? How could exchange rates affect the financial position and performance and CSL’s financial statements. (3 marks, LO2)
d) Explain whether CSL prepare Special Purpose Financial Reports or General-Purpose Financial Reports.
(3 marks, LO3)
e) Which expenses on the Income Statement would be regarded as variable? How can managers use this to control its budgets? (3 marks, LO3)
f) How has CSL’s ability to manage inventory changed from 2019 and 2020? Show using calculations. Why is managing appropriate inventory a challenge for firms? (6 marks, LO2)
Consider the CSL Yahoo Finance data.
g) Find the closing price for the share price on October 16, 2020. How would investors feel about the value of their shares in CSL, if they purchased shares on the 17 February 2020? What if they had purchased the shares on 30th October 2019? What do these values suggest about risks of investing in the Share market and what would you recommend a potential investor? (8 marks, LO3) PART B: Capital Budgeting – 20 marks. Students must answer all question
CSL division is considering installing a mass-production of vaccine plant at their NSW factory. They have two options. They can either purchase a plant that is locally built (Double-Helix) and is untried at this stage (but the sellers have built other, smaller plants) or one that can be purchased and installed in NSW by a company that has built super-plants in Russia (??????? Solutions which is a Russian Firm).
Each supplier has quoted the costs on a delivered and installed basis and the after-tax cash returns per unit from each supplier are forecast below (All figures are in Australian Dollars):
Years Double-Helix ??????? Solutions
Initial
investment Cost: $1,900,000
(including $200,000 for installation & training) Cost: $1,800,000
(including $400,000 for installation & training)
1 $600,000 $900,000
2 $720,000 $500,000
3 $425,000 $705,000
Other information:
• Due to CSL’s excellent credit rating, it has negotiated a cost of financing the machines at 8% p.a.
• The project manager believes that the Double-Helix plant can be sold at the end of three years for $300,000 but ??????? Solutions’ plant would have a salvage value of $200,000. These sales would be added to each project’s final year cash inflow.
a) For which of the four purposes is CSL undertaking this Capital Budgeting program? (2 marks, LO2)
b) Which step of this decision-making is often ignored, based on research? (3 marks, LO3)
c) Using a spreadsheet program calculate the Net Present Value of purchasing from each supplier. Paste the relevant cells from the spreadsheet into the Word document. (6 marks, LO2)
d) Calculate the Payback period of purchasing from each supplier. (2 marks, LO2)
e) From which company should CSL purchase? Explain your reasons. (3 marks, LO4)
f) When making investment decisions, what are some other issues (outside the cash flow aspects of the project) may influence decision-making in relation to this project? (4 marks, LO4)
References
The Academic Integrity and Conduct Policy requires the appropriate use of intext citations and bibliography. You must cite all references (information sources) and comply with the expectations for academic writing. (you must use ACU Harvard)
How do I submit?
Via the Examinations LEO Portal as a single word document.
For Part B Question C, complete the calculations in a spreadsheet program (Excel is suggested) and copy and paste the relevant spreadsheet cells into the word document as a table to show your calculations.
Helpful Websites and Resources
Content from LEO Weeks 7-11
Source 1: CSL Annual report 2019/20
https://www.csl.com/-/media/csl/documents/annual-report-docs/csl-ltd-annual-report-2020-full.pdf
Source 2: CSL Annual Report summary 2019/20
https://medialib.csl.com/-/media/shared/documents/results/2020-fy-announcement.pdf?la=enus&hash=6DC4210B71BD961AE0BD0E1514EE02E2FFAD9328
Source 3: Yahoo finance CSL historical share and dividend data https://au.finance.yahoo.com/quote/csl.ax?ltr=1
Birt J., Chalmers K., Maloney S., Brooks A., Oliver, J. and Bond D (2020)., Accounting: Business Reporting for Decision Making 7th ed. Milton, Qld. John Wiley and Sons Australia.
Who can help me?
Kanchan Bandyopadhyay: Monday and Wednesday classes
Samantha McKee: Tuesday class
Jyotirmoy Podder: Thursday class
Studiosity
Academic skills Unit (ASU)
I’m having problems
EX and SC Form to seek extension of submission date for an assessment task. https://handbook.acu.edu.au/handbooks/handbook_2020/policies_and_general_information/assessment__policy_and_procedure/assessment_procedures
Referencing
All referencing should be in ACU Harvard style; however if you are coming from another faculty, you may choose to use your usual referencing style. If this is the case you must indicate at the top of your reference list what referencing style you are using (e.g. APA, MLA, Chicago, etc).
Please ensure your assignment makes use of in-text citations and a reference list. Missing citations or references is equivalent to plagiarism.
Criteria
Each question has the marks allocated to it for your specific guidance.
Checklist Before submitting:
Have I done the following?
Not re-written the question in my submission
Answered all questions concisely and clearly labelled each answer in a single Word document
Copied and pasted my Excel answer to Part B, Question C into my Word document
Ensured I have followed the correct Academic Conduct protocols including referencing
